10
Mar
Warning: Chinese PPI posts sharpest rise since 2008
Strong producer price growth (+7.8%). China will export inflation. Positive GDP outlook. Surge in external demand. Increase in profits in China in 2017.
Key points
- Growth in China’s PPI (+7.8%) reinforces global inflation prospects
- Increase in export prices of +6.3%
- Li Keqiang announces growth target for 2017 of 6.5%
- A positive surprise for China’s GDP cannot be ruled out in 2017
- Recovery expected for Chinese exports
- Optimistic leading indicators
- Record imports and exceptional foreign trade deficit in February
- Monetary policy is still accommodative
- Stabilisation of foreign reserves
- Better outlook for equities in 2017
- Revaluation of Chinese equities
